A William Blair agent delegates a sales presentation to a junior colleague, aware the colleague routinely omits key risk details. A client is defrauded due to these omissions. Which statement BEST describes the delegating agent’s liability?

1. ALiable as a primary violator of fraud.
2. BPotential joint and several liability as a materially aiding person under Section 410(c), subject to the statutory defense✓ Correct answer
3. CNot liable if the agent did not directly interact with the client.
4. DLiable only if the omissions were intentional.

Reading one answer is not the same as being ready

Lucky the Banker is a free practice app with 1,051+ Series 63 questions, weak-area tracking, and timed mock exams. No credit card, no paywall.

• A seller offers a security by omitting a material fact, the buyer does not know of the omission, and the seller cannot…
• A banker negligently fails to review updated financials and repeats outdated, inaccurate statements to a client. The…
• A banker intentionally withholds a material negative fact while offering a security, but the client does not buy. Which…
• During a client presentation, a junior banker intentionally withholds negative information about a recommended…
• A client was sold an unregistered, non-exempt security in State Y and the agent promptly offers rescission before the…
• Which omission is LEAST likely to be considered fraudulent under the Uniform Securities Act?
• A seller realizes that a security was sold in violation of the USA and sends a written rescission offer to the buyer.…
• A William Blair supervisor learns that a subordinate is pitching a private placement without following disclosure rules…